12 May 2011

Shtokman Development AG Will Hold a Series of Workshops Jointly with WWF

On 12 May 2011, at Shtokman Development AG initiative, the Company representatives had a meeting with a special group of experts in Murmansk. The meeting was attended by Shtokman environmental engineering contractors (FRECOM, Polar Research Institute of Marine Fisheries and Oceanography — PINRO, Murmansk Marine Biological Institute of RAS Kola Research Center), as well as representatives of regional public environmental organizations (WWF-Russia Barents Sea Branch, Bellona-Murmansk, Kola Wildlife Preservation Center).

SDAG representatives put forward an initiative to have public and environmental organizations involved in operational monitoring at Shtokman Project implementation stage. In addition, the attendees supported an idea to set up compensatory specially protected natural area in the vicinity of Voronia Bay at Kola Peninsula. Concerned public environmental organizations were proposed to accede to Cooperation Agreement between SDAG and WWF signed in September 2009, and to develop information sharing procedure.

The attendees confirmed a need to continue the dialogue. Shtokman Development AG intends to hold consultations with key stakeholders throughout the process of development of design engineering documentation within the scope of Shtokman Phase 1 implementation. With a view to discuss and address additional issues raised by public, SDAG, jointly with WWF, will hold a series of workshops for clarification of the Project basic engineering solutions.

In 2010, SDAG set up a special group of experts with a view to ensure maximum effectiveness in consideration of public comments and proposals on OVOS materials (environmental impact assessment) made in the course of public hearings regarding Shtokman Project. Such meetings were held in 2010, and proved their effectiveness.

Background:

Shtokman gas-condensate field is located in the central part of the Russian sector of the Barents Sea 550 km away from Kola Peninsula. By the explored reserves of natural gas Shtokman is now one of the largest fields in the world. Phase One of Shtokman field will be developed with annual production of 23.7 bn m3 of gas per year by Shtokman Development AG, a company created in February 2008, a joint project of three leading world companies Gazprom (51%), Total S.A. (25%) and Statoil ASA (24%).

World Wildlife Fund (WWF) is one of the largest non-governmental, charitable organizations, which has been working for more than 40 years to conserve the nature all around the world. Each year WWF supports over 1200 environmental projects, thus attracting the attention of millions of people to the problems of environment protection and their solution. World Wildlife Fund (WWF) started first projects in Russia back in 1988, and in 1994 opened a WWF representative office in Russia. In 2004 the World Wildlife Fund became a Russian national organization.

On 20 September 2010 the design engineering documentation on Shtokman gas-condensate field development, updated with consideration of the comments and proposals made by the public, received a positive conclusion from the State environmental expertise (GEE).